Adam Smith's Pin Factory  	 	I thought it fitting that my first post to the blog be to quote from  Adam Smith's pin factory example from the Wealth of Nations.   Obviously, this was the inspiration for our blog name and the logo.
    Note that Smith estimates somewhere between a 240 and 4800 fold increase in productivity by dividing the labour in this pin factory!
   To take an example, therefore,*19 from a very trifling manufacture;  but one in which the division of labour has been very often taken notice  of, the trade of the pin-maker; a workman not educated to this business  (which the division of labour has rendered a distinct trade),*20 nor  acquainted with the use of the machinery employed in it (to the  invention of which the same division of labour has probably given  occasion), could scarce, perhaps, with his utmost industry, make one pin  in a day, and certainly could not make twenty. But in the way in which  this business is now carried on, not only the whole work is a peculiar  trade, but it is divided into a number of branches, of which the greater  part are likewise peculiar trades. One man draws out the wire, another  straights it, a third cuts it, a fourth points it, a fifth grinds it at  the top for receiving the head; to make the head requires two or three  distinct operations; to put it on, is a peculiar business, to whiten the  pins is another; it is even a trade by itself to put them into the  paper; and the important business of making a pin is, in this manner,  divided into about eighteen distinct operations, which, in some  manufactories, are all performed by distinct hands, though in others the  same man will sometimes perform two or three of them.*21 I have seen a  small manufactory of this kind where ten men only were employed, and  where some of them consequently performed two or three distinct  operations. But though they were very poor, and therefore but  indifferently accommodated with the necessary machinery, they could,  when they exerted themselves, make among them about twelve pounds of  pins in a day. There are in a pound upwards of four thousand pins of a  middling size. Those ten persons, therefore, could make among them  upwards of forty-eight thousand pins in a day. Each person, therefore,  making a tenth part of forty-eight thousand pins, might be considered as  making four thousand eight hundred pins in a day. But if they had all  wrought separately and independently, and without any of them having  been educated to this peculiar business, they certainly could not each  of them have made twenty, perhaps not one pin in a day; that is,  certainly, not the two hundred and fortieth, perhaps not the four  thousand eight hundredth part of what they are at present capable of  performing, in consequence of a proper division and combination of their  different operations.
    You can read the entire Wealth of Nations  here
  divisionoflabour.com |